U.S. Dollar Index Falls Off A Cliff
As we all should know by now, when the U.S. Dollar Index declines the major stock market indexes will usually inflate and trade higher. Since 7:40 am EST, the U.S. Dollar Index has declined lower by 0.47 cents to $75.42 per contract. This is exactly when the S&P 500 Index made a move higher into positive territory. All traders must keep a chart of the U.S. Dollar Index up at all times.
The sectors that will usually bounce higher when the U.S. Dollar Index declines includes energy, metals, and agriculture. Traders can easily see how stocks such as Exxon Mobil Corp.(NYSE:XOM), Potash Corp.(NYSE:POT), and the iShares Silver Trust(NYSE:SLV) have all rallied higher as the U.S. Dollar Index has declined. Traders should also be aware that if the U.S. Dollar Index rallies higher intra-day these same sectors will often deflate and trade lower.